In 2020, I am encouraging the couples in my Date Night Club to start the year by setting just one goal for themselves. You heard me right: just one. And in fact, the easier that goal is to achieve, the better.
Now, I’m not lazy and neither are the couples in my Date Night Club. But I am convinced if they can reach one goal — create one win in their financial life — that will give them the confidence boost they need to propel them forward. It’s a lot like the debt snowball method: paying off the smallest debt first and letting that psychological and financial momentum inspire you to keep tackling your smallest debt until you’ve paid off everything you owe.
So, can you name your own financial goals — and, more importantly, do you have a clear sense of how to achieve them? The findings from last week’s audit can give you a great place to start. Here’s my suggested list to help you prioritize, and some tips for helping you check off your list one goal at a time.
· Income: Found out you aren’t being paid what the market says you might be worth? Take the courageous step and ask your employer for a raise. Do your research, boldly ask for more, and be tenacious in your follow-up process. Find you aren’t gaining any traction? It might be time to look for another job.
Tip: Remember that if you want to grow your income, your employer is not the only place to look. You may also choose to start a side hustle, where you can use your passions to make some extra cash. However, if you are underpaid, the quickest win is getting a raise from your employer.
· Day-to-Day Expenses: Spending more than you earn? Track your spending for a month to see where your money is really going. You can do this using paper & pen, a spreadsheet, or my personal favorite app, Mint. Where are you spending more or less than you might have thought? Where might you trim back? Create a plan for your money that prioritizes needs (paying the bills and repaying debt) while also leaving space for some wants. Do your best to get most of your bills on autopay, and ensure there’s enough money in your account to pay them.
Tip: Struggling in one or two specific areas? Consider taking out cash each month to cover those costs and don’t let yourself spend more than that amount.
· Emergency Savings: Don’t have that short-term emergency fund in place? Make getting that first $1,000 stashed away a high priority so something like a little fender bender expense won’t throw your other goals off kilter. Have the short-term but not the long-term? Find out how much you need and then set aside money every month toward that goal. Set it and forget it so that money is working for you in the background as you pursue other goals. Check in occasionally to see what progress you’ve made.
Check your progress: Wondering how to save up that $1,000 fast? Check out this article from The Ways to Wealth. It’s chock-full of tips and places to start. My personal favorite: Shop around your monthly bills like your insurance, cell phone, and internet providers. Then save your “savings.”
· Debt Repayment: Haven’t yet made a solid plan to repay your debt? Now is the time to do so. If you have high interest debt (with an interest rate of 10% or more), you’ll want to make repaying that debt a top priority after your short-term emergency fund. If it’s lower interest, create a debt repayment plan that allows you to pay down your debt while also giving you space to save for other important goals like retirement and your long-term emergency fund.
Tip: Not sure where to start? Check out this debt calculator. It’s the same one my husband and I used to create our student loan repayment plan.
· Retirement Savings: Falling behind in this area? Make a goal of meeting your employer match (if you have one) and growing from there until you reach the recommended 15% contribution between you and your employer. I realize 15% can sound daunting. If it feels out of reach, start small (even just 1%) and grow it from there. If your plan offers you the opportunity to “auto escalate” — so your contribution automatically increases by a certain % each year until you reach your goal — take advantage of that.
Tip: Use this Fidelity calculator to see how much that extra 1% will really cost you.
Have other financial goals you’re working on, like saving up for a house, building your child’s education fund, or preparing for a baby? This Thursday, Jan. 16, I’ll be going Live on Facebook at 8pm Central to share tips on how to achieve these important goals and more! Only have Instagram? Don’t worry — I’ll be posting the recording to IGTV later.
Ready to up your financial game as a couple in 2020? Join my Date Night Club! Each month I’ll email you a recipe for the perfect money date, complete with ice breaker question, short video, activity, and discussion questions — all designed to help you and your partner get on the same page about your finances and move forward with confidence. You set the date and I’ll take it from there. Join today! This month I’m helping my date night couples use a financial audit to create a list of priorities they can both agree to. Throughout 2020, I’ll be encouraging them to work through this list.
P.S. – Ready to up your financial communication game in 2020 and get on the same page with your partner about your money goals? Join me at my Love & Money brunch on Feb. 29. PLUS, this month I’m giving away a free ticket for one lucky couple! All you have to do to enter is comment on this Facebook or Instagram post and tag one friend (hint: tag your partner). Feel free to comment as many times as you like and tag as many friends as you like to increase your number of entries. I’ll be drawing the winner during my Live on Jan. 23!